Lamb Weston (NYSE:LW) Posts Quarterly Earnings Results, Misses Expectations By $0.20 EPS

Lamb Weston (NYSE:LW) released its earnings results on Thursday. The specialty retailer reported $1.20 earnings per share for the quarter, missing the consensus estimate of $1.40 by ($0.20), Briefing.com reports. The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.65 billion. Lamb Weston had a net margin of 16.71% and a return on equity of 50.74%. The firm’s quarterly revenue was up 16.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.43 EPS. Lamb Weston updated its FY24 guidance to $5.50-5.65 EPS and its FY 2024 guidance to 5.500-5.650 EPS.

Lamb Weston Price Performance

Shares of Lamb Weston stock traded down $1.75 on Friday, reaching $79.78. 9,745,586 shares of the stock were exchanged, compared to its average volume of 2,695,098. The firm’s 50 day moving average is $101.93 and its 200-day moving average is $99.72. Lamb Weston has a one year low of $78.76 and a one year high of $117.38. The company has a debt-to-equity ratio of 1.81, a quick ratio of 0.57 and a current ratio of 1.19. The firm has a market cap of $11.52 billion, a PE ratio of 10.37, a P/E/G ratio of 0.98 and a beta of 0.72.

Lamb Weston Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 3rd will be issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 1.80%. The ex-dividend date of this dividend is Thursday, May 2nd. Lamb Weston’s dividend payout ratio is currently 18.73%.

Analyst Ratings Changes

A number of research analysts have commented on the stock. StockNews.com cut shares of Lamb Weston from a “hold” rating to a “sell” rating in a research note on Friday, January 5th. Bank of America lowered their price target on shares of Lamb Weston from $138.00 to $113.00 and set a “buy” rating for the company in a report on Friday. BNP Paribas initiated coverage on shares of Lamb Weston in a report on Monday, March 11th. They issued an “outperform” rating and a $128.00 price target for the company. Citigroup initiated coverage on shares of Lamb Weston in a report on Thursday, February 1st. They set a “buy” rating and a $132.00 target price for the company. Finally, Stifel Nicolaus lowered their target price on shares of Lamb Weston from $130.00 to $115.00 and set a “buy” rating for the company in a report on Friday. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and nine have assigned a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $122.00.

Hedge Funds Weigh In On Lamb Weston

Several institutional investors and hedge funds have recently added to or reduced their stakes in LW. Price T Rowe Associates Inc. MD increased its position in shares of Lamb Weston by 1.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 194,436 shares of the specialty retailer’s stock worth $21,017,000 after buying an additional 3,430 shares during the period. Townsquare Capital LLC lifted its position in shares of Lamb Weston by 15.5% during the fourth quarter. Townsquare Capital LLC now owns 31,209 shares of the specialty retailer’s stock valued at $3,373,000 after purchasing an additional 4,187 shares in the last quarter. Systematic Portfolios LLC bought a new position in shares of Lamb Weston during the fourth quarter valued at about $298,000. Legal & General Group Plc lifted its position in shares of Lamb Weston by 24.1% during the fourth quarter. Legal & General Group Plc now owns 921,912 shares of the specialty retailer’s stock valued at $99,650,000 after purchasing an additional 179,067 shares in the last quarter. Finally, Viking Global Investors LP purchased a new stake in Lamb Weston during the fourth quarter worth about $383,220,000. Institutional investors own 89.56% of the company’s stock.

About Lamb Weston

Lamb Weston Holdings, Inc produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.